2:30 p.m.
Here’s the quick rundown on the Ralph Gilles Presentation:
Dodge will get a new logo. He said “All Dodge vehicles will represent lifestyles, not age groups or price classes.”
The company will also completely repackage vehicles and overhaul branding marketing. Gilles says Sergio Marchionne drives a Dodge Nitro now. He says the vehicle missed the mark, and that he wanted it to be sporty and fun to drive… Instead drivers got a boring vehicle. It will be remade to be sportier vehicle. He will oversee a ”Major Product Intervention- All Models.”
Starting with the Dodge Caliber: it gets a new interior, new color and wheels and repackaged marketing.
The Avenger: will get an all new interior, new engine, refreshed exterior, repackaging, comfort, convenience performance and fuel economy.
Journey: will get a new interior, new engine refreshed exterior.
Caravan: will have a new interior and exterior face lift and new engine. Desire to be come Best in Class again!
Charger: will have a new dramatic style
Also a new 7 passenger SUV from Dodge, a new C segment sedan for North American Market, all New B segment hat, all new D segment Sedan will be coming in 2012.
As for quality, company admits it’s quality was substandard and even had a problem so bad it could not and would not address quality problems for two and a half months! That is about to change. Company intends to and is in process of entirely revamping quality processes. The intent is to get to world class and Fiat will provide the leadership at Chrysler for this.
Expect to see a lot of Dodge Ram Truck commercials in the immediate future including the World Series. The company intends to roll out Ram as a separate brand [that is part of Dodge]. It also intends to get back into the commercial vehicle market and also is even thinking whether to build 18 wheel trucks.
Breaking for lunch.
12:45 p.m.
The Rotunda is packed! In this room are at least 500 people. More than just journalists from all over the world, it’s populated with local mayors, city managers, auto analysts, dealers from across the country, and even the Board of Directors along with most of Chrysler’s new management.
CEO Sergio Marchionne entered the room surrounded by dozens of television cameras. He walked around the room with his media mob for about five minutes. He then stood to the side of the stage as New Board Chairman C. Robert Kidder, who said the new Board strongly supports Sergio Marchionne and his team. He admitted the company is facing a “monumental challenge”, needs to change and stated the number one priority is to create a compelling brand and product offering. It is his desire and demand that the company create a high-performance culture. There is no more business as usual and there is an “incredible commitment to change”. He introduced Sergio Marchionne.
Marchionne has a wry sense of humor. He was concerned about the microphones strapped to his pants might find him with his pants around his ankles and warned the crowd about the possibility. He also quoted an Al Gore joke that said he felt like Zsa Zsa Gabor’s fifth husband, who knew what to do but worried about how to make it interesting. He then went into his presentation. He said analysts have gotten Chrysler’s financial situation wrong. He said the company sits on $5.7 Billion in cash, $1.7 Billion more than what the Feds gave. He said the company actually made $200 Million dollars before tax in the third quarer and said the company was at break even in September. He cited substantial cost cutting and has become “exceptionally parcimonious” and downright “cheap” with its spending.
